VAT in Cambodia — rates, thresholds, returns

In 3 bullets

• Cambodian VAT (Value Added Tax) is charged at a standard rate of 10% on almost all goods and services supplied in Cambodia; 0% on exports of goods and services consumed outside Cambodia.
• You must register with the GDT from commencement if you are a company, importer/exporter or investment enterprise, or once your turnover exceeds the thresholds (goods > 125M KHR / services > 60M KHR over 3 consecutive months).
• Monthly return AND payment by the 20th of the following month (or the 25th with e-filing/e-payment). A nil return is still mandatory.

Who is liable for VAT

VAT applies to taxable persons under the self-assessment regime of the GDT . The following must register for VAT:

• All companies (Co. Ltd., PLC, branch), importers, exporters and investment enterprises — from the start of activity, with no turnover threshold.
• Taxpayers whose turnover in goods exceeds 125,000,000 KHR over the preceding 3 consecutive months (or is likely to exceed it over the next 3 months).
• Taxpayers whose turnover in services exceeds 60,000,000 KHR over the preceding 3 consecutive months.
• Holders of government contracts generating taxable turnover above 30,000,000 KHR.

Registration must be done at commencement or within 30 days of becoming a taxable person.

VAT rates

Standard rate: 10%

The standard rate is 10% on the supply of most goods and services made in Cambodia, as well as on imports.

Zero rate: 0%

The 0% (zero-rated supplies) applies in particular to:

• The export of goods out of Cambodia.
• Services rendered / consumed outside Cambodia.
• International transport of passengers or goods and connected services.
• Supporting industries and subcontractors supplying certain goods and services to export-oriented manufacturers (textile, garment, footwear, bags, headwear) and milled-rice exporters, subject to conditions.

The difference between 0% and exempt is fundamental: at 0% you invoice without VAT but recover the VAT on your purchases (credit); when exempt, you charge no VAT and cannot recover input VAT.

Non-taxable (exempt) supplies

The following are exempt from VAT (main list):

• Public postal services.
• Medical and dental services.
• Electricity and water.
• Passenger transport by a public system wholly owned by the State.
• Insurance services.
• Primary financial services.
• Land (the sale of land is not subject to VAT).
• Unprocessed agricultural products and certain education services.

Output VAT, input VAT and VAT credit

The mechanism is standard:

• Output VAT: the 10% you charge your customers.
• Input VAT: the 10% you pay your suppliers and on imports.
• VAT due = output VAT − input VAT. If the balance is negative, you have a VAT credit.

The VAT credit is in principle carried forward to following months. Some input VAT is non-deductible: entertainment/representation expenses, purchase of passenger cars, certain petroleum products.

Returns and payment

• Frequency: monthly.
• Deadline: by the 20th of the following month (manual filing), extended to the 25th for those using e-filing and e-payment. If the 20th falls on a Saturday, Sunday or public holiday, the deadline rolls to the next working day.
• Channel: the tax.gov.kh/en/e-service portal (e-Filing) or a partner bank (ABA, ACLEDA, Canadia, J Trust Royal).
• Nil return: if you had no sales in a given month, you must still file a nil return. Failure to file triggers penalties and late-payment interest.

VAT is one of the monthly returns managed under the same company TIN (alongside ToS, withholding taxes, etc.) — see GDT returns.

How to register for VAT

1. Incorporate the company at the MoC (Certificate of Incorporation).
2. Tax registration at the GDT: obtain the TIN (Tax Identification Number) and the VAT registration certificate.
3. Activate e-Filing at tax.gov.kh to file the monthly returns online.
4. Issue compliant invoices (showing the TIN, the net amount, the 10% VAT and the gross) from registration onwards.

VAT registration is generally done at the same time as the company’s initial tax registration, via your accounting firm.

Required documents

• MoC Certificate of Incorporation (company number).
• Company TIN + e-Filing credentials.
• Patent paid (see the patent guide) — often checked at the same time.
• Head-office address (commercial lease).
• For a credit refund: purchase invoices, import declarations, export evidence ( GDCE customs documents).

VAT on non-resident e-commerce

Since Sub-Decree No. 65 (April 2021) and Prakas No. 542 (September 2021), in force from 2022, non-resident suppliers of digital goods and services (software, SaaS, streaming, hosting, online services) to Cambodian customers are liable for VAT at 10%.

• Registration thresholds (simplified regime): annual turnover in Cambodia ≥ 250,000,000 KHR (~USD 62,500), or ≥ 60,000,000 KHR (~USD 15,000) over 3 consecutive months.
• Deadline: register via the simplified procedure (fewer documents than standard registration) within 30 days.
• B2C (sale to a consumer): the non-resident supplier collects and remits the 10% VAT.
• B2B (sale to a Cambodian taxable business): reverse-charge mechanism — the Cambodian customer (self-assessment taxpayer) declares and pays the VAT. The non-resident then does not apply the 10% if the customer provides their TIN, company name and bank details.
• Returns: monthly, by the 20th (manual) / 25th (e-filing) of the following month, as for residents.

Common pitfalls

FAQ

What is the VAT rate in Cambodia?

10% standard rate on almost all goods and services, and on imports. 0% on exports of goods and services consumed outside Cambodia. Some supplies (insurance, medical, financial, public postal, land) are exempt.

From what turnover must I register for VAT?

Any company, importer, exporter or investment enterprise must register from commencement, with no threshold. For others, the threshold is 125M KHR (goods) or 60M KHR (services) of taxable turnover over 3 consecutive months, or a government contract > 30M KHR. Register within 30 days.

When must I file and pay VAT?

Every month, by the 20th of the following month (manual filing) or the 25th if you use e-filing and e-payment. The return is due even with no sales (nil return).

Will I be refunded my VAT credit if I export?

Exporters (invoicing at 0%) accumulate credit and can claim a refund, but in practice this is reserved for medium and large taxpayers; small taxpayers are limited to a carried-forward credit (capped). Timelines can be long — plan your cash flow.

I sell a digital service from abroad to Cambodian customers — am I concerned?

Yes, if you are a non-resident and exceed 250M KHR/yr (~USD 62,500) or 60M KHR (~USD 15,000) over 3 consecutive months: simplified VAT registration within 30 days, 10% on B2C. For B2B, the Cambodian customer reverse-charges the VAT — see Prakas No. 542.

Is the VAT paid on my purchases always deductible?

No. Input VAT on entertainment/representation expenses, the purchase of passenger cars and certain petroleum products is non-deductible. The rest is, provided you hold a compliant VAT invoice (with the supplier’s TIN).